Multinational companies (MNCs) will cut suppliers for failing to curb carbon emissions, with 78% of them planning to remove suppliers that endanger their carbon transition plan by 2025, according to a new study by Standard Chartered (StanChart).
For Malaysian suppliers who fail to transition alongside their MNC partners, this could mean a loss in export revenue of US$65.3 billion (RM268.8 bil).
“However, the study also reveals a US$1.6 trillion market opportunity for (Malaysian) suppliers who decarbonise in line with their MNC partners’ net zero plans,” StanChart said in a statement today.
According to the study called Carbon Dated, as large corporates transition to net zero carbon goals, 15% of MNCs have already begun removing suppliers that might scupper their transition plans.
In total, MNCs expect to exclude 35% of their current suppliers as they move away from carbon, it added.
